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Atlanta Systems produces two different products, Product A, which sells for $800 per unit, and Product B, which sells for $1,500 per unit, using three
Atlanta Systems produces two different products, Product A, which sells for $800 per unit, and Product B, which sells for $1,500 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver, Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Design (Engineering Hours) Cost $ 260,000 $3,200,000 $ 300,000 Usage by Product A 122 2,440 Usage by Product B 128 2,560 28 52 Machining (Machine Hours) Inspection (Batches) Atlanta manufactures 12,500 units of Product A and 10,422 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uses $140 of direct materials and $75 of direct labor Required: a. Calculate the activity rate for design. Rate for Design per hour b. Calculate the activity rate for machining. Rate for Machining Toor hour Required: a. Calculate the activity rate for design. Rate for Design per hour b. Calculate the activity rate for machining. Rate for Machining per hour c. Calculate the activity rate for inspection. Rate for Inspection per batch d. Determine the indirect costs assigned to Product A. Indirect Costs e. Determine the indirect costs assigned to Product B. Indirect Costs f. Determine the manufacturing cost per unit for Product A. (Round your answer to the nearest w Manufacturing Cost per unit g. Determine the manufacturing cost per unit for Product B. (Round your answer to the nearest whole dollars.) Manufacturing Cost per unit h. Determine the gross profit per unit for Product A. (Round your intermediate calculations and final answer to the nearest w dollars.) Gross Profit per unit i. Determine the gross profit per unit for Product B. (Round your intermediate calculations and final answer to the nearest wh dollars.) Gross Profit per unit
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